EMPOWERING THE BUSINESSES THAT ARE REDEFINING COMMERCE

INFLUENCERS DINNER

7/1/14

The On-Demand Economy is a member-driven organization of mobile

commerce executives, thought leaders, service providers, journalists,

investors, and consumer advocates.

We are experiencing a revolution enabled by new technologies and shifting

consumer habits, spurring “The On-Demand Economy.” Mobile businesses

are rapidly changing industries, cities, and lives, and smartphones are

becoming the remote controls that allow us to navigate our daily lives. We

believe mobile spending will represent the fastest and most

transformational shift in consumer spending seen in history.

The On-Demand Economy will serve as an unbiased platform to meet

influential industry participants, collaborate with like-minded businesses,

address collective issues, and provide access to research and data for all

members.

Discover, celebrate, and learn from this innovative new industry that is

redefining commerce by making lives around the world easier and more

convenient.

Table of Contents

3

I. The On-Demand Economy

II. Grocery Survey

III. On-Demand Influencers’ Survey

IV. On-Demand Mobile Survey

© The On-Demand Economy

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7

13

23

I. The On-Demand Economy

4 © The On-Demand Economy

5 © The On-Demand Economy

On-Demand Framework

5

Fact Sheet

6 © The On-Demand Economy

0

4

8

12

16

20

0

500

1,000

1,500

2,000

2,500

Nu

mb

er

of

Bu

sin

ess

es

To

tal In

vest

nts

(000's

)

Industry Sector

On-Demand Investments

Previous 5 Years

Previous 12 Months

Number of Businesses

On-Demand Pioneers

0%

20%

40%

60%

80%

Mobile Commerce Categories To Experience The Most

Explosive Growth Over The Next Three Years

0%

10%

20%

30%

40%

50%Reasons For Trying Online Grocery Shopping

Source: Data as of 6/30/14 compiled from AngelList and Crunchbase by On-Demand Economy Researchers

Sources: National Restaurant Association, Euromonitor, GrubHub, AngelList, Crunchbase, Mobile Commerce Daily, IBISWorld, TechCrunch

US Total Addressable Market ($B) $683 $11

Total Capital Invested in Past 5 Years

($B)>$1.1 >$2.1

Number of On-Demand Companies

(globally)>20 >25

Representative Businesses

Monthly Active Users (000’s) >3,800 >450

Total Global Revenue in 2013 ($M) >$1,000 >$1,000

Estimated Growth Rate (per year) >50% ~200%

Gross Margins (% of Rev) 10-15% 20-25%

Mobile Transactions (as % of Total) >40% 100%

Food

Delivery

Ground

Transportation

II. Grocery Survey

7 © The On-Demand Economy

Grocery Survey

8

The On-Demand Economy surveyed 250 shoppers on

6/12/14 - 7/1/14 at Trader Joe’s and Whole Foods in

NY who were in the store but had previously

purchased groceries online

Grocery delivery services such as Instacart,

FreshDirect, and Postmates have raised over $372M

in funding with nearly 40% raised in the past year

The On-Demand Economy’s goal was to determine

the online groceries consumer’s:

Mindset when purchasing groceries online

Preferred medium for ordering online

Rationale for purchasing groceries in the store

versus shopping online

Overview

© The On-Demand Economy

Male 38%

Female 62%

Gender

<20 2%

20-35 55%

36-50 32%

50+ 10%

Age

9

20% of respondents have purchased

groceries online through their mobile

devices

© The On-Demand Economy

63% of respondents who have purchased

groceries through their mobile devices are

under 35, with only 13% older than 50

63%

13%

0%

10%

20%

30%

40%

50%

60%

70%

<35 >50

Age

Age of Shoppers Purchasing Groceries Through Their Mobile

Devices Mobile 11%

Not mobile 81%

Both 9%

Are Shoppers Ordering Groceries Through Mobile?

Young Shoppers Dominate Mobile Grocery Shopping

Mobile Grocery Shopping

Why Are They At The Grocery Store?

10

30% of respondents noted “being in

the neighborhood” as one of their

main reasons for not ordering online

Only 6% of respondents reported

having a bad experience with a

previous online order

They’re In The Neighborhood…

© The On-Demand Economy

30%

25%

19% 18%

13% 11% 11%

9% 6% 5%

0%

5%

10%

15%

20%

25%

30%

35%

Rationale For Choosing Not To Purchase Online

11 © The On-Demand Economy

46% of respondents cited the

convenience of deliveries as one of

the main reasons for trying grocery

delivery services

23% of respondents noted avoiding

the hassle of carrying groceries as a

key reason for trying online grocery

delivery services

46%

23% 22% 19% 18%

16%

10% 8%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Reasons For Trying Online Grocery Shopping

Why Try Purchasing Groceries Online?

Convenience Is King!

12 © The On-Demand Economy

35% of mobile grocery shoppers

noted incentives as one of their main

reasons for trying the services, as

compared to only 15% of Non-Mobile

shoppers

The Influential Power of Incentives for

Mobile vs. Non-Mobile Grocery

Shoppers 35%

15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Mobile Not Mobile

Transaction Method

The Power of Incentives

Mobile Incentives Are Key to Customer Acquisition

III. On-Demand Influencers’ Survey

13 © The On-Demand Economy

14 © The On-Demand Economy

19 on-demand service executives and thought leaders

were surveyed by The On-Demand Economy on

6/23/14-7/1/14

These surveys were conducted by The On-Demand

Economy with the intention of:

Uncovering new trends and opportunities through

the collective wisdom of those who know the

space most intimately

Developing a collaborative viewpoint on persistent

questions and concerns related to the industry

Highlighting commonalities between a wide range

of on-demand services

On-demand business

executives

On-demand business

investors

On-demand industry 3rd

party service providers

Survey Participants

On-Demand Influencers’ Survey

Overview

15 © The On-Demand Economy

Over valued 63%

Under valued 37%

Uber's Valuation

n= 19

Uber’s Valuation

Is Uber at $18.2B Over Valued?

16 © The On-Demand Economy

Expected Compound Annual Growth Rate (next 3 years)

0%

10%

20%

30%

40%

<10% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% >90%

Perc

enta

ge o

f R

esp

on

ses

US M-Commerce Compound Annual Growth Rate During The Next Three Years

n= 18

The Rapid Growth of Mobile Commerce

2x Expected Growth Over Next 3 Years

0.0%

10.0%

20.0%

30.0%

40.0%

16-19% 20-24% 25-29% 30-34% 35-39% 40-44% 45-49% >50%

M-Commerce Spend As a Percentage of Total US Digital Spend (E-Commerce & M-Commerce) in 2016

17 © The On-Demand Economy

16%

Estimates as

reported by

eMarketer

Percentage of M-Commerce Spend/Total

n= 18

Mobile Commerce Spend In 2016

61% Believe M-Commerce Will Comprise >30% of Total Spend

18 © The On-Demand Economy

0%

10%

20%

30%

40%

50%

60%

70%

80%

Industry That Will Experience The Most Explosive Growth Over The Next Three Years

n= 18

The Future of Mobile Commerce

67% Believe Grocery Industry Will Experience The Most Growth

19 © The On-Demand Economy

n= 18

No 61%

Yes 39%

Do You Feel That We Are In a Bubble?

Do You Feel That We Are In a Bubble?

61% Do Not Feel That We Are In a Bubble

20 © The On-Demand Economy

Yes 89%

No 11%

Is Mobile What Makes The On-Demand Economy Possible?

n= 18

The Impact of Mobile On The On-Demand Economy

89% Believe Mobile Makes The On-Demand Economy Possible

21 © The On-Demand Economy

0% 10% 20% 30% 40% 50%

Government support

Other (betterexperience)

Collaboration betweenindustry participants…

Continousimprovements in…

Adoption in secondaryand tertiary markets

Appetite forconvenience in…

Factors of Success For The On-Demand Economy

Percentage of Responses

n= 18

Factors of Success For The On-Demand Economy

33% Believe Appetite For Convenience In Primary Markets is Key

22 © The On-Demand Economy

0% 10% 20% 30% 40% 50%

Availability of financing

Future market demand

New regulations

Technical resources

Existing competition

Current market demand

Operational resources

New competition

On-Demand Worries: Investing and Operations

Percentage of Responses

n= 18

On-Demand Worries: Investing and Operations

39% Are Worried About New Competition

IV. On-Demand Mobile Survey

23 © The On-Demand Economy

24 © The On-Demand Economy

Surveys conducted by The On-Demand Economy on

11/3/13-11/6/13 with over 9,000 smartphone users in the

act of using a mobile application

These surveys were conducted by The On-Demand

Economy with the intention of:

Assessing awareness levels of on-demand

services within core demographics

Exploring how consumers engage with mobile

applications

Smartphone owners

Primarily urban dwellers

Mobile application users

Survey Participant Profile

On-Demand Mobile Survey

Overview

25 © The On-Demand Economy

22% 20% 24% 21% 24% 23%

27% 22%

78% 80% 76% 79% 76% 77%

73% 78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total NY LA CHI DA BOS SF Other

Awareness of Uber By City

Unaware

Aware

n= 9156

Awareness of Uber By City

22% of Smartphone Respondents Have Heard of Uber

26 © The On-Demand Economy